Romania's largest fertilizers producer, Azomureș, announced that it has decided to temporarily suspend the production of ammonia (an intermediate product obtained from gas, used to manufacture fertilizers), Economica.net reported.

The plant will be shut down safely from June 23.

"We will continue to produce fertilizers until the existing ammonia stock is depleted. Other companies in Europe have made similar decisions, the cause being the same: lack of sustainability [given the high natural gas price]," the company's statement reads.

The European gas market has seen a sharp rise in prices in recent days, when the prices have risen from EUR 80 per Mwh to EUR 125 - 130 per Mwh.

The explosion of a liquefied gas (LNG) export terminal in the United States, problems in the gas transmission chain and massive gas storage operations for the winter season 2022 - 2023 have again led to a price increase.

At the same time, fertilizer prices have fallen due to the agricultural season, with the main activities now being harvesting.

"Under these conditions, it is obvious that the production of fertilizers is no longer economically sustainable," the Romanian company concluded.

Azomures urged the Government to use the EU framework and cap the gas price for energy-intensive industries and warned that the farmers would be left without fertilizers when they need them later in the year.

(Photo: Azomures Facebook Page)

andrei@romania-insider.com